DOWNTOWN SAN DIEGO  The Over-The-Line Tournament is expected to proceed as planned next month despite a lawsuit that threatened to derail the annual alcohol-fueled and adults-only sporting event on Fiesta Island.

Mayor Bob Filner signed a special-event permit Thursday, calling Over-The-Line a tradition that many San Diegans consider a vested right.

“When I learned that there was a challenge to the Over-The-Line tournament ... I said ‘Well I guess anybody can sue anything, but this is a little bit ridiculous.’” Filner said. “We have to do what’s necessary on the legal front certainly to make sure that there is an OTL this year and that’s what we agree today to do.”

FreePB.org, a nonprofit group that previously opposed the city’s alcohol ban on beaches, sued the city earlier this month for approving a permit for the OTL tournament without subjecting it to an environmental review and therefore giving organizers special treatment. The lawsuit sought a judge’s ruling that the permit approval process was illegal and therefore null and void until an environmental review is conducted.

OTL organizers responded by filing for a permit that exempts the event from environmental review, which was subsequently approved by city officials and signed by Filner. Thursday’s action is a good sign for OTL enthusiasts, but there remains a possibility the tournament could still be called off.

A court hearing has been set for July 9 to consider an injunction requested by FreePB. org to block the event. In addition, that same day the City Council will consider an administrative appeal of the new permit although it’s highly unlikely the council would object.

Filner said the lawsuit raised important questions about fairness of the permitting process that he promised to address.

“We’re going to have a fair permitting process that everybody in the city will be treated fairly and equally, but we need to get on with this year’s tournament and we need to have those questions discussed in the future.”

Cory Briggs, the attorney representing FreePB.org, said, “When it comes to treating people equally kicking the can down the road is unacceptable and that is what the mayor did this morning.”

The 60th Annual World Championship Over-The-Line Tournament, which is expected to draw 50,000 competitors and spectators to Mission Bay, is set to begin the weekend of July 13-14 and wrap up the following weekend of July 20-21. The event — in which teams compete in a softball-like bat-and-ball sport — has been a San Diego tradition for decades.

The Old Mission Beach Athletic Club has run the annual tournament for six decades and has received a special-event permit for the past 40 years.

Tom Smith, the tournament’s chairman, applauded the city’s decision to keep OTL going. He said participants come from 25 different states and the uncertainty raised by the lawsuits was concerning.

“OMBAC’s really not a political organization so we don’t get into saying this or that,” he said. “We just like to run our event and enjoy it.”

Asked if OTL was getting special treatment, Smith replied, “Absolutely not. We have an amazing alcohol management system for the way our permit goes. We spend a lot of money on it and we work with the city just to make sure it goes through.”